tax

Britain’s wealthiest families paid $1.2 billion in tax in the last financial year at a time when the state revenue contributions of the world’s richest individuals and corporations are coming under increasing scrutiny.

Britain’s wealthiest families paid $1.2 billion in tax in the last financial year at a time when the state revenue contributions of the world’s richest individuals and corporations are coming under increasing scrutiny.

Dermot Campbell, chief executive of Kuber Ventures, a tax efficient investments platform, asks what next for UK family offices after the British General Election resulted in a hung parliament.

Dermot Campbell, chief executive of Kuber Ventures, a tax efficient investments platform, asks what next for UK family offices after the British General Election resulted in a hung parliament.

The 2017 UK General Election concluded with the government stuck in a period of extreme legislative impasse which may stall Treasury moves to change the UK’s tax efficient investments regime, a sector which has been growing in importance to family office investors.

Family business specialists are calling on the British government not to reintroduce plans to cut tax breaks on dividends but some observers say the measures are likely to be brought back after the forthcoming general election.

Family business specialists are calling on the British government not to reintroduce plans to cut tax breaks on dividends but some observers say the measures are likely to be brought back after the forthcoming general election.

As part of a wider downsizing of an unusually lengthy piece of legislation, the British government put aside proposals in its 2017 Finance Bill to cut the dividend tax-free allowance from £5,000 to £2,000 ($6,468 to $2,587).

UK government proposals to abolish permanent non-domiciled status and reduce the status timeframe to 15 years could lead to “a mass exodus of older money”, a private client lawyer predicts.

UK government proposals to abolish permanent non-domiciled status and reduce the status timeframe to 15 years could lead to “a mass exodus of older money”, a private client lawyer predicts.

Ashley King-Christopher, private wealth and family office partner at Charles Russell Speechlys, said the change to the non-domiciled status was “a surprise that is going to be unhelpful for older money”.

However he added that corporation tax changes could boost the attractiveness of London as a family office centre.

Since the global financial crisis struck in 2008, offshore financial centres (OFCs) have come under sustained attack. As the world’s leading economies struggled to balance their books in the face of massive declines in tax revenue, the lowest fruit was seen to be hanging from the offshore tree.

Since the global financial crisis struck in 2008, offshore financial centres (OFCs) have come under sustained attack. As the world’s leading economies struggled to balance their books in the face of massive declines in tax revenue, the lowest fruit was seen to be hanging from the offshore tree. Estimates of the scale of offshore deposits vary wildly, from Boston Consulting Group’s $8.9 trillion (€6.5 trillion) to Tax Justice Network’s $21 trillion – but clearly it is a very enticing crop.

Basing a family business in Cyprus or Poland instead of Denmark or France could significantly alter the tax burden on the next generation following succession, according to new analysis released by KPMG and European Family Businesses.

Basing a family business in Cyprus or Poland instead of Denmark or France could significantly alter the tax burden on the next generation following succession, according to new analysis released by KPMG and European Family Businesses.